Investment Securities

6 Months Ended

Jun. 30, 2012

Schedule of Investments [Abstract]

Investment Securities

NOTE 3

Investment Securities

Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost of securities as shown in the consolidated balance sheets and their estimated fair values at June 30, 2012, and December 31, 2011, were as follows:

Securities Available For Sale:

June 30, 2012		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	1,249,000	$	82,596	$	0	$	1,331,596
Residential mortgage-backed securities		11,961,856		819,308		0		12,781,164
Total debt securities AFS		13,210,856		901,904		0		14,112,760
Equity securities		174,549		0		44,149		130,400
Total securities AFS	$	13,385,405	$	901,904	$	44,149	$	14,243,160

December 31, 2011		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	2,724,000	$	117,597	$	0	$	2,841,597
Residential mortgage-backed securities		24,345,585		1,343,250		0		25,688,835
Total debt securities AFS		27,069,585		1,460,847		0		28,530,432
Equity securities		174,549		0		64,149		110,400
Total securities AFS	$	27,244,134	$	1,460,847	$	64,149	$	28,640,832

Securities Held to Maturity:

June 30, 2012		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	1,999,761	$	1,759	$	0	$	2,001,520
State and municipal securities		36,708,074		1,260,452		24,440		37,944,086
Residential mortgage-backed securities		19,070,381		757,836		0		19,828,217
Total securities HTM	$	57,778,216	$	2,020,047	$	24,440	$	59,773,823

December 31, 2011		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	29,918,408	$	1,137,322	$	5,674	$	31,050,056
Residential mortgage-backed securities		22,420,320		688,147		0		23,108,467
Total securities HTM	$	52,338,728	$	1,825,469	$	5,674	$	54,158,523

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position, follows:

June 30, 2012	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities Available for Sale
Temporarily impaired debt securities:
State and municipal securities	$	0	$	0	$	0	$	0
Residential mortgage-backed securities		0		0		0		0
Total debt securities AFS		0		0		0		0
Temporarily impaired equity securities		44,149		130,400		0		0
Other-than-temporarily impaired equity securities		0		0		0		0
Total securities available for sale	$	44,149	$	130,400	$	0	$	0
Securities Held to Maturity
Temporarily impaired debt securities:
U.S. Government Agency securities	$	0	$	0	$	0	$	0
State and municipal securities		24,440		4,925,956		0		0
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	24,440	$	4,925,956	$	0	$	0

December 31, 2011	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities Available for Sale
Temporarily impaired debt securities:
State and municipal securities	$	0	$	0	$	0	$	0
Residential mortgage-backed securities		0		0		0		0
Total debt securities AFS		0		0		0		0
Temporarily impaired equity securities		64,149		110,400		0		0
Other-than-temporarily impaired equity securities		0		0		0		0
Total securities available for sale	$	64,149	$	110,400	$	0	$	0
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	5,674	$	1,142,423	$	0	$	0
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	5,674	$	1,142,423	$	0	$	0

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Management assesses whether an other-than-temporary impairment is present when the fair value of a security is less than its amortized cost basis at the balance sheet date.  For such securities, other-than-temporary impairment is considered to have occurred if the Corporation intends to sell the security, if it is more likely than not the Corporation will be required to sell the security before recovery of its amortized cost basis or if the present values of expected cash flows is not sufficient to recover the entire amortized cost.

In March 2011, the Corporation sold the remaining shares of Freddie Mac preferred stock. Common stock of a FDIC problem bank held in the Corporation’s investment portfolio was deemed impaired and a loss of $12,265 was recognized in the second quarter of 2011.

At June 30, 2012, the debt securities with unrealized losses have depreciated 0.9% from the Corporation’s amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. Management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale. Also, no declines in debt securities are deemed to be other-than-temporary.